The cultural facet of doing business has become the thing of attention in many countries throughout the world. Experts in neuro-scientific economy and business owners are closely learning the sphere of affect of national ethnicities on business, as well as nationwide characteristics and peculiarities to do business in different countries. And even, the experience of several companies stresses the importance of ethnic and national proportions when leading the business to foreign markets, in the procedures of mergers and acquisitions, as well as the starting of representative offices and affiliates far away.
The goal of the paper is to summarize the reasons why the various components of culture might improve the cost of doing business in a country.
Also in the paper it is necessary to provide types of countries, compare the cultures of these countries and discuss the ways in which cultural distinctions will affect the expense of doing business in each. In conclusion of the dialogue it will be examined how business procedures and ethics vary across the civilizations.
"Our very own way of living is just a standard, it is other folks have ethnic, individual-specific and social peculiarities. "
In the late 1990's in the business culture area dominated two principles: "culture as the substance" and "Culture as a notable difference" that allow inspecting cross-cultural problems that managers and organizations face only in conditions of distinctions in prices, linguistic and mental differences. Context of discussion was not taken into account, and all the ethnical factors were regarded as a couple of exterior phenomena, not related to the actions of the business.
According to research by Teacher of Comparative and International Management of Business School and School of Nottingham, Nigel G. Holden conducted at the start of the XXI century, the culture should be looked at as an organizational tool, and cultural variations - as a form of organizational knowledge, phoning for dealing with inter-ethnic ethnic problems.
As the basic components of modern international management could be looked at interactive global information network, team varieties of work and organizational education. In this regard, today's managers out of experts have converted into "sophisticated analysts, capable of managing sophisticated of projects, people, resources and problems" (Drucker, 1996).
In the development of thought, Peter Drucker pointed out that for managers in several countries the key challenge is to improve the production of knowledge and training of professionals working with him. With respect to the global market, Drucker discussed the of craze output increase of knowledge factor and employees, united in a multicultural team, with the global information network communicating with the external environment of the business (customers, shareholders, society, power).
Management and marketing have become international, and multicultural clubs are key elements of cross-cultural management and marketing, which Nigel Holden proposes to consider as the management of different civilizations. The idea of culture is interpreted much less a couple of national or ethnic characteristics, but as the "portion of standard knowledge and a unified system of principles that influence the business, without sufficient awareness of the excellent, clear, defined restrictions" (Holden, 2005).
Thus, in the new current economic climate culture indeed has become one of the sources of the organization. The primary requirement on earth market is formulated as "obtaining the obtain the most from alliances "across edges" and promoting organizational learning".
Consequently, culture can be regarded as one of the factors impacting the organization. For the discussion of organizations with lots of different civilizations can be noted that the organizations involved with international economic relationships depend on a variety of external experts: duty services, lawyers, bankers, marketing and advertising agencies. And in a situation of monetary globalization transnational, multinational companies need new varieties of expertise: the knowledge of successful means of working, successful solutions (put on the local business culture).
"With increasing global competition this is a cross-cultural knowledge that becomes the foundation of the additional advantages of the organization" (Fink and Meyerhof, 2001).
It is important that the culture was realized and used by the management of the business as a tool, and everything the values of computer were transformed into knowledge. Such a change makes the culture a probability of arranging and competence, which really is a "set of skills and solutions that enable the company to give the customer something special" (Holden, 2005).
It is essential to choose two countries that are culturally diverse, compare the ethnicities of those countries and discuss the ways that cultural differences influence business sphere in each, how business techniques and ethics change across the cultures.
1. United States of America
The history of the American land, that has generated its own business world in a historically short time, proves that People in america are enterprising, courageous and hardworking people. If to keep in mind the changing times of the conquest of the Wild West, the have difficulty for self-reliance, as well as the actual fact that the ancestors of the Americans were immigrants who visited a overseas country for joy, these facts show that the entrepreneurial and business culture of People in the usa are "in their blood", as the saying goes.
American design of business conversation is seen as a pragmatism and results orientation. In addition, American businesses are often trying to reduce the possible costs, carefully examine the organizational aspect of any business, carefully check the possible results of decisions and pay attention to details. The essential guidelines of the People in america include the analysis, parting of functions and control. Specialization - is one of the strongest peculiarities of People in america, as it is difficult to find encyclopedic educated people, but there are a great number of good specialists and experts in small spheres.
Americans cherish enough time and appreciate punctuality, they use diaries and live in line with the schedules. Therefore, doing joint business with them, people and business lovers must come to an appointment with time.
Communicating with People in america it's important to know they are characterized by self-confidence and even snobbery towards international lovers, as they believe that they are perfectly versed in the business of any country, any nationality, and they want other countries take example of them and their way to do business.
It is important that America is the weirdo, as individuality and individual privileges are the most important for the People in the usa. From early youth, Americans are accustomed to count only on themselves, so these are independent, full of energy and ambitious, they know very well what they want, and relentlessly make an effort to achieve their goals. Americans like to remain competitive, to understand the accomplishments and files, and upon this ground are constantly rivalling with one another. As a rule, Americans are direct people, they appreciate in people integrity and candor, quickly go to the substance of the discussion and not waste time on formalities.
During conferences (unless this is a diplomatic reception) Americans avoid needless formality and rigidity, preferring a comfortable, casual clothes. Americans appreciate the jokes and act in response well to them, trying to focus on the friendliness and openness. However, their humor can sometimes seem a lttle bit rough and primitive. Also the task with People in america requires efficiency and exactness of terms.
Ethics and guidelines of business, marketing and management in particular, in Japan are different substantially from the guidelines and restrictions of the business world of the Western.
In japan national personality stand hard work, solidarity with the group norms, adherence to practices also to develop the visual sense, discipline, work, courtesy and poise. Japanese from years as a child are brought up in the nature of "group solidarity" and figure out how to suppress their mental impulses, looking to "save face" in the most distressing situations. Japan's moral is convinced about the bonds of shared dependence and moral responsibility lie in the basis of relationships between people.
Japanese population is homogeneous and pervaded the heart of collectivism. Japanese are always thinking on behalf of categories, and person knows himself primarily as a member of the group, and personality is an integral part of the complete community.
Management in Japan, as in any other country, shows its historical features, culture and social mindset, it is
directly related to the socio-economic set ups of the country. Analysis of the Japanese management is of particular interest for the following reasons: this is a kind of management that has the most striking variations with the wide-spread in the developed capitalist countries American (American) style. Presuppositions of management and marketing methods, as well as specific methods for their execution in Japanese companies are significantly not the same as American.
The Japan are receptive to new ideas, they would prefer to learn from mistakes and reap the benefits of others' experiences. They are closely watching what's happening on earth and systematically supplement the info from in another country. They borrow and quickly assimilate new scientific methods and techniques.
It is also very important to point out that Japanese employees have no level of resistance to the release of new products and technological improvement, as creativity - is the foundation for economic progress and the Japanese are genuinely focused on it.
In today's world business and entrepreneurship go way beyond the nationwide markets, involving an increasing number of men and women from different ethnical areas. As a result, cultural differences get started to play an increasing role in organizations and have stronger impact on the marginal efficiency of business activities. That is why there are cross-cultural issues in international business that are described by distinctions in: language, religious beliefs, politics and regulation, geography, fine art, education, technology and other life principles.
It is essential to stress the value of the condition of cross-cultural method of international business development, the successful solution of which requires a new approach to language and ethnical differences to accomplish growth in materials wealth and monetary and effective procedure of the multinational clubs of professionals.
Underestimation of cross-cultural gaps in the work of companies from different countries often causes a crisis of business relationships, lower business activity. In the mean time, the bond of different business civilizations in the management involves not only openness and common trust, but a serious effort to build up plans for common strategic development and marketing programs.